January 11, 2019 / 9:32 AM / 2 months ago

South Africa's Sibanye-Stillwater extends debt covenants

Mine workers employed at Sibanye Gold's Masimthembe shaft operate a drill in Westonaria, South Africa, April 3, 2017. REUTERS/Mike Hutchings

JOHANNESBURG (Reuters) - South African gold mining company Sibanye-Stillwater said on Friday that its lenders had agreed to extend its debt covenants at the upper limit of its facilities.

The company has been on an spending spree in a bid to diversify away from gold including making an all-share offer for London-listed Lonmin in 2017 in a deal worth 285 million pounds ($363 million).

Sibanye said the 13 South African and international banks comprising its U.S. dollar and rand revolving credit facilities had agreed to retain the upper limit of its credit facilities and the same terms for a further 12 months.

“The headroom resulting from the extension provides sufficient financial flexibility and should provide the market with additional confidence,” Chief Executive Neal Froneman said in a statement.

($1 = 0.7854 pounds)

Reporting by Tanisha Heiberg; editing by Jason Neely

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